Cases have come to the notice of the Board where the IAC passed penalty orders without giving a reasonable opportunity of being heard to the assessee, with the result that orders were challenged and struck down in appeal.

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..... e: Income - Tax Act, 1961 Cases have come to the notice of the Board where the IAC passed penalty orders without giving a reasonable opportunity of being heard to the assessee, with the result that orders were challenged and struck down in appeal. 2. In one cases, the notice fixing the date of hearing on 18-1-1972 was served on the assessee on 19-1-1972. The fact of service on 19-1-1972 came .....

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..... e latter had promise that he would try and contact the assessee. However, the authorised representative did not report verbally or otherwise to the I.A.C. While levying the penalty on 27-3-1972 the I.A.C. was of the view that the minimum penalty leviable was equivalent to the income concealed and he took the addition sustained by the A.A.C. as the income concealed by the assessee. 4. The I.T.A.T .....

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..... m the material on record and the Appellate Asst. Commissioner has thrown away the case by what we may describe as his negligence to comply with an express requirement of law." The above cases have been adversely commented on by the Audit. No remedial action is possible. 5. Attention is incited to the Board's Circular No. 25-D(XLV-15) of 1963 dated 1-10-63 under which the maintenance of a Regis .....

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..... n II (1967 Edition). 6. In order to ensure that the assesses can be given reasonable opportunity as per the provisions of the section 274(1) of the Income-tax Act, 1961, and adjournments can be granted, wherever called for, it is essential that the instructions referred to in para 5 above are strictly adhered to by all the Officers of the Department. 7. The above instructions should be brought .....

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